Mumbai: Stock markets washed out major part of its early gains on selling after mid-session but continued momentum in RIL, ITC, HDFC Bank and HUL shares helped the S&P BSE Sensex on Friday close with a 85 point-gain at 19,495.82.

Buying was seen in bluechips from refinery, FMCG and metal segments, helping extend Indian stocks' rally for the second straight week as Sensex rose 100 points in the period. On Thursday, the BSE 30-share barometer resumed strong with a gap of over 150 points following firm Asian cues and improved further to a one-month high of 19,640.27.

However, profit-selling erased some gains with the index settling at 19,495.82, still a rise of 84.98 points or 0.44 percent over Thursday. On Thursday, it had flared up by 233.08 points or 1.22 percent.

Brokers said the market remained firm as heavyweights RIL surged on heavy FII buying and Hindustan Unilever Ltd (HUL) climbed to record high after its Anglo-Dutch parent Unilever Plc increased stake in the Indian firm. ITC rose after hiking prices for one a cigarette brand. Jindal Steel was the biggest winner among Sensex scrips with 3.51 percent rise.

Similarly, the NSE Nifty also firmed up further by 30.95 points to 5,867.90. SX40 index, the flagship index of MCX-SX, closed 60.3 points, or 0.52 percent higher at 11,625.88. Weakness in the rupee value, that approached all-time low of 60.76 registered on June 26, also impacted the stock market sentiment. The rupee was last quoting at 60.45 in late afternoon deals on suspected RBI intervention at day's lows.

"Global markets were subdued ahead of US non-farm payrolls data. This is important as Fed may closely watch the data while arriving at a decision on continuing monetary easing program," said Dipen Shah, Head of PCG Research, Kotak Securities.

In Asia, barring South Korea, which closed in negative terrain, other regional markets gained after the two most important central banks in Europe surprised by assuring investors they were in no hurry to wind down stimulus.

Key benchmark indices in China, Hong Kong, Singapore, Japan and Taiwan were up in 0.05 to 2.08 percent range while the index from South Korea fell by 0.32 percent. European stocks, however, trading narrowly mixed. Germany's DAX was up by 0.06 percent and the UK's FTSE by 0.27 percent while France's CAC was down by 0.10 percent.

However, US index futures indicated strong opening today after overnight holiday and ahead of the influential non-farm payrolls data for June later on Friday. It was an eventful week, especially the latter half, as Indian markets reacted to unforeseen events in Portugal, Greece and Egypt on the one hand and the volatile rupee, on the other.

The government's decision to almost double the gas prices from April 2014 had a positive impact on the markets, while markets did not react negatively to the move of bringing an ordinance on Food Security despite high costs, said traders.

"Broadly for the markets, the rise in USD/INR still remains a concern. And unless there is no correction in the USD/INR rates, we could see broader indices either remain down or trade sideways," said Nagji K Rita, CMD, Inventure Growth & Securities.